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Russia Holds Key Rate at 21% Amid Surging Inflation

The Bank of Russia unexpectedly maintained its key interest rate at a record-high  21% , defying analysts’ expectations of another significant hike as inflation remains stubbornly elevated. The decision marks a shift toward a more measured approach in balancing economic growth and price stability. Key Details Inflation Concerns: Annual inflation climbed to  8.9%  in November, well above the central bank’s  4% target , with inflation expectations reaching  13.9%  in December. Policy Rationale: The central bank cited the significant tightening of monetary conditions after October’s  200-basis point hike  as sufficient to resume disinflationary processes. Governor Elvira Nabiullina emphasized avoiding both economic overheating and severe slowdowns. Economic Overheating: Elevated government spending on the war in Ukraine and social programs, coupled with labor shortages and rising wages, have fueled strong domestic demand, exacerbating price pressures...

Market Daily Report: KLCI closes 1% lower amid worries over pandemic and economy

  KUALA LUMPUR (June 30): The FBM KLCI closed by more than 1% today on investors’ concern about Malaysia’s daily Covid-19 figures and economic outlook. The benchmark index closed 15.68 points or 1.01% lower at 1,532.63. Twenty-five of the 30 index-linked counters finished in the red, led by Digi.Com Bhd (down 3.5% or 15 sen at RM4.13), Sime Darby Plantation Bhd (down 3.16% or 13 sen at RM3.98) and Top Glove Corp Bhd (down 3.02% or 13 sen at RM4.17). The market breadth was negative with losers outnumbering gainers by 663 to 307, while 425 counters were unchanged. Total volume stood at 4.65 billion shares worth RM2.67 billion. Remisier Jeffry Azizi Jaafar said investor sentiment was dented by Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz’s statement yesterday that the government's official gross domestic product (GDP) forecast of between 6% and 7.5% this year will need to be revised downwards. Going forward, Jeffry said the KLCI’s downside risk remains amid slo...

Market Daily Report: KLCI chalked up marginal gains as regional markets sag

  KUALA LUMPUR (June 29): The FBM KLCI eked out marginal gains today, as regional markets mostly sagged. At 5pm, the benchmark index closed up 3.6 points or 0.23% at 1,548.31, after trading between 1,541.72 and 1,549.26. The broader market was mixed with gainers beating losers by 505 to 430, while 471 counters traded unchanged. Volume was 4.79 billion shares valued at RM2.59 billion. Rakuten Trade head of research Kenny Yee said the investors’ sentiment remained cautious today, following yesterday’s heavy selldown, suggesting a tepid response to the latest PEMULIH stimulus package introduced by the government. “The cautious market sentiment also took cues from the weak regional performance today,” Yee added. Among the 30 constituents, Sime Darby Bhd led the pack as the biggest gainer and was higher by 3.29% or seven sen to close at RM2.20. This was followed by Hartalega Holdings Bhd (up 2.6% or 19 sen to settle at RM7.49) and Hap Seng Consolidated Bhd (rose 1.8% or 14 se...

Market Daily Report: KLCI closes at near eight-month low on selling following lockdown extension

  KUALA LUMPUR (June 28): The FBM KLCI closed 0.96% lower after lingering in negative territory for the entire session on broad-based selling as investors weighed the impact of further extension of the full lockdown. The benchmark index dropped 14.97 points to 1,544.71, its lowest level since Nov 9, 2020. It opened 2.22 points lower at 1,557.46 and dropped to as low as 1,539.60. The broader market was also down with 975 counters closing lower against 133 gainers, while 343 stocks closed unchanged. Some 4.73 billion shares worth RM2.38 billion were traded. Malacca Securities Sdn Bhd senior analyst Kenneth Leong said the extension of the current movement control order (MCO 3.0) had affected investor sentiment, resulting in the heavy selldown. “The lockdown extension has sparked concern that the economic recovery may stall for even longer,” he said when contacted. Leong, however, expects the KLCI to rebound going forward against the backdrop of the new stimulus package ...

Market Daily Report: KLCI finishes 0.26% higher amid regional gains

  KUALA LUMPUR (June 25): The FBM KLCI ended 0.255% higher today, in line with regional bourses, which tracked Wall Street gains on US President Joe Biden's infrastructure deal. The gains, however, were capped by cautious sentiment on the potential extension of the full movement control order (FMCO) amid high daily new Covid-19 cases. The benchmark index pared its earlier gains to close 3.97 points higher at 1,559.68. It earlier rose to an intraday high of 1,563.47 points. Rakuten Trade Research vice-president Thong Pak Leng said the market was flattish today as it lacked fresh catalysts. “As the number of Covid-19 cases was still quite high, investors were worried about the [possible] extension of the FMCO,” he told theedgemarkets.com. The market movement next week, according to him, will depend on the government’s decision on the FMCO. “If the FMCO is lifted, we may see some bargain hunting on stocks with strong fundamentals,” he said. Meanwhile, Hong Le...

Market Daily Report: KLCI slips as domestic political risk continues to drag sentiment

KUALA LUMPUR (June 24): The FBM KLCI fell 0.58% today as domestic political infighting, a slow vaccination rate and high daily Covid-19 cases continued to drag market sentiment. The benchmark index ended 9.05 points lower at 1,555.71 after rising to an intraday high of 1,567.59. MIDF research head Imran Yassin Md Yusof said the market lacked catalysts and sentiment was bearish on domestic political risk. “However, I expect some bargain hunting in the next few days as the KLCI has broken the key supporting level of 1,565,” he told theedgemarkets.com. TA Securities, meanwhile, said in a note today that due to continuing domestic political infighting and pending a stronger ramp-up in vaccination and substantial reduction in daily Covid-19 cases, the market should extend its correction in the immediate term. “Key index support on breakdown below 1,565 will be 1,552, with better support at 1,540 and 1,520. Immediate resistance is lowered to 1,580,...

Market Daily Report: KLCI finishes 0.59% lower as political and economic concerns weigh on sentiment

  KUALA LUMPUR (June 23): The FBM KLCI closed lower today, as investors remained cautious amid concerns over the domestic political and economic situation. The benchmark index finished 0.59% or 9.26 points lower at 1564.76. Areca Capital Sdn Bhd chief executive officer Danny Wong said the market was dragged by the domestic political and economic risks. “The market will be range bound until more clarity is seen on vaccination and Covid-19 cases,” he told theedgemarkets.com. TA Securities also said in a note today that range bound trade is likely to persist, amid worries over the domestic economic and political landscape in the current full movement control order period, and pending further acceleration in vaccinations and significant drop in daily Covid-19 cases. “Key index supports remain at last Friday's low of 1,565, followed by the next pivot low of 1,552, while better supports are at 1,540 and 1,520. “Immediate resistance remains at 1,600, with more formidable re...

Market Daily Report: KLCI ends 0.11% higher, tracking regional gains

  KUALA LUMPUR (June 22): The FBM KLCI ended 0.11% higher today, tracking regional markets on the back of the overnight rally on Wall Street. The benchmark index closed 1.78 points higher at 1574.02, after rising to a high of 1,577.57. Inter-Pacific Securities head of research Victor Wan said the KLCI's rebound was in tandem with the rally on Wall Street. “However, the recovery strength is not quite there yet, as there are not enough catalysts to lift the market,” he told theedgemarkets.com. He added that the level of market participation has been low lately, as many investors are not looking at the market at this point. Other than the local political uncertainty, the market's concern is that the second-half economic growth is not going to meet  expectations because of the full movement control order (FMCO), Wan said, adding that corporate earnings are expected to underperform too. “Investors are waiting for more concrete evidence that could drive a sustainable r...

Market Daily Report: KLCI down 1.06% as hawkish Fed weighs on market sentiment

  KUALA LUMPUR (June 21): The FBM KLCI fell 1.06% today, in line with declines in Wall Street and regional markets, following hawkish comments from the US Federal Reserves (Fed). The benchmark index, which opened 8.54 points lower at 1,580.51, closed at 1,572.24 — down 16.81 points from last Friday's close. Areca Capital Sdn Bhd chief executive officer Danny Wong said the concern that the Fed will normalize the rate faster than expected has dragged overall market sentiment today. “I think the market is a bit sensitive to this news. I expect the KLCI to rebound over the next few days after digesting the news,” he told theedgemarkets.com . Hong Leong Investment Bank Research’s analyst Ng Jun Sheng, meanwhile, wrote in a note today that he anticipated the KLCI to continue to trend sideways in the short term, with a slight negative bias, in the midst of a hawkish Fed, elevated Covid-19 cases nationwide, the impact of the full movement control order extension to the economy...

Market Daily Report: KLCI rebounds 1.16% to close at intraday high amid bargain hunting

  KUALA LUMPUR (June 18): The FBM KLCI rebounded today on bargain hunting following the recent sell-off. The benchmark index closed 18.19 points or 1.16% higher at its intraday high of 1,589.05. Rakuten Trade head of research Kenny Yee said there were some bargain-hunting activities after the recent downtrend. “However, the KLCI is expected to be range-bound next week due to uncertainty over the Parliament developments,” he told theedgemarkets.com. While also expecting the KLCI to continue to trend sideways, Hong Leong Investment Bank (HLIB) Research analyst Ng Jun Seng believed the downside risk to the KLCI is likely to be cushioned near the 1,545-1,552 zone as the nationwide vaccination programme gains strength and is anticipated to hit above 300,000 shots daily from July to August onwards after crossing the threshold of 200,000 jabs this week. Across Bursa Malaysia, 6.31 billion securities were traded for RM4.77 billion, compared with 4.26 bil...

Market Daily Report: KLCI closes 0.47% lower as uncertainties over domestic political developments loom

  KUALA LUMPUR (June 17): The FBM KLCI closed 0.47% or 7.46 points lower at 1570.86 today as investors remained cautious, pending more clarity of recent domestic political developments. Malacca Securities Sdn Bhd head of research Loui Low said the downtrend of the KLCI today was mainly due to investors being afraid of exposing themselves to political risks. “The trading value and volume were not exciting as well as investors were still digesting the National Recovery Plan,” he told theedgemarkets.com. He expects the market to trade either sideways or negative tomorrow and next week as investors are also likely to stay cautious as daily Covid-19 cases remain high. Likewise, TA Securities said in a note today that the cautious market undertone should persist until there is more clarity on the politics side and further details of the four-phase exit strategy from the current economic lockdown. “Immediate index support remains at the recent pivot...

Market Daily Report: KLCI ends 0.19% lower ahead of FOMC meeting

  KUALA LUMPUR (June 15): The FBM KLCI fell today as investors stayed cautious while awaiting the outcome of the US Federal Open Market Committee (FOMC) meeting. The benchmark index closed 3.05 points or 0.19% lower at 1,578.32. Malacca Securities Sdn Bhd senior analyst Kenneth Leong said market sentiment was jittery ahead of the meeting of the FOMC, a committee within the US Federal Reserve System. “The market movement in the next few days will depend on the outcome of the FOMC. If the Federal Reserve tapers its bond buying program, we may see the pull back from the market and vice versa,” he told The Edge . While believing a recovery is an eventuality, Hong Leong Investment Bank Research analyst Ng Jun Seng said investors may turn cautious about the heightened risks of economic and corporate earnings growth prospects following an extension of the full movement control order to June 28, as well as the Malay rulers’ special meeting and FOMC outcome. “Nevertheless, the...

Market Daily Report: KLCI flat as investors stay on sidelines ahead of national recovery plan announcement

  KUALA LUMPUR (June 15): The FBM KLCI ended the day on a flat note, as investors stayed on the sidelines, ahead of the government’s national recovery plan announcement. The benchmark index closed 1.09 points or 0.07% lower at 1,581.37 today after rising to a high of 1586.10. MIDF head of research Imran Yassin Md Yusof told theedgemarkets.com the KLCI was flattish for the whole day as the market lacked catalysts. The index's movement tomorrow, meanwhile, will depend on the government’s national recovery plan, which was scheduled to be announced by Prime Minister Tan Sri Muhyiddin Yassin at 5pm today, said Imran. On the other hand, TA Securities said in a note today that the local market should stay range-bound, with most investors staying on the sidelines, pending the outcome of Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah's meeting with the Conference of Rulers tomorrow. On the index, it said the immediate support level...

Market Daily Report: KLCI ends at intraday low as regional equity indices decline

  KUALA LUMPUR (June 9): The FBM KLCI posted today a 6.48-point or 0.41% decline to close at its intraday low of 1,581.48 on profit taking and as Asian equity indices fell, while investors continued to weigh the impact of progress in Covid-19 vaccination to rejuvenate a pandemic-hit world economy. Across Bursa Malaysia at 5pm, there were 640 decliners and 367 gainers. A total of six billion securities were traded for RM3.2 billion. "The plan for further acceleration in daily vaccination by the government in coming months to 300,000 daily jabs by August, if realised, should sustain economic recovery plays, hence sectors such as construction, banking and property should outperform,” TA Securities Holdings Bhd analysts wrote in a note today. The KLCI finished up 9.51 points at 1,587.96 yesterday. Across Asia today, it was reported that the MSCI's broadest index of Asia-Pacific shares outside Japan ticked down 0.3%, while Japan's Nikkei average s...

Market Daily Report: KLCI closes 0.3% lower amid mixed regional performance

  KUALA LUMPUR (June 11): The FBM KLCI continued to post a decline today, with the benchmark index falling 0.3% or 4.74 points to close at 1,575.16. Rakuten Trade head of equity sales Vincent Lau noted that the KLCI's performance was in line with regional markets.  He also noted that many investors had reduced their exposure ahead of the weekend, as well as due to concerns over the country’s Covid-19 daily case numbers coming up again. “That said, cases are expected to come down with the ramp-up in the government’s vaccination efforts,” he said. The top decliners among the index’s constituents were Supermax Corp Bhd, Sime Darby Plantation Bhd and Hap Seng Consolidated Bhd.  Of the 30 component stocks currently on the index, 18 counters posted declines, 10 posted gains and two were unchanged. Broader market sentiment was mostly negative, with 533 counters posting declines, versus the 476 that were unchanged and 441 that posted gains. The top active stocks ...

Market Daily Report: KLCI finishes down after final-hour profit taking

  KUALA LUMPUR (June 10): The FBM KLCI closed down 1.58 points or 0.1% today at its intraday low of 1,579.90 on profit taking in the final trading hour as global investors waited for the US inflation data and the European Central Bank's (ECB) interest rate decision. In Malaysia, analysts and fund managers sald investors are observing keenly the nation’s political developments involving meetings between political party heads with the King. Areca Capital Sdn Bhd chief executive officer Danny Wong said investors are taking a wait-and-see approach while TA Securities Holdings Bhd analysts wrote in a note today that the local market should trade sideways given the recent domestic political development with regard to the meetings involving political party heads with Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah "as investors stay aside pending more certainty”. It was reported that ongoing developments in the country, in particular the Co...

Market Daily Report: KLCI ends at intraday low as regional equity indices decline

  KUALA LUMPUR (June 9): The FBM KLCI posted today a 6.48-point or 0.41% decline to close at its intraday low of 1,581.48 on profit taking and as Asian equity indices fell, while investors continued to weigh the impact of progress in Covid-19 vaccination to rejuvenate a pandemic-hit world economy. Across Bursa Malaysia at 5pm, there were 640 decliners and 367 gainers. A total of six billion securities were traded for RM3.2 billion. "The plan for further acceleration in daily vaccination by the government in coming months to 300,000 daily jabs by August, if realised, should sustain economic recovery plays, hence sectors such as construction, banking and property should outperform,” TA Securities Holdings Bhd analysts wrote in a note today. The KLCI finished up 9.51 points at 1,587.96 yesterday. Across Asia today, it was reported that the MSCI's broadest index of Asia-Pacific shares outside Japan ticked down 0.3%, while Japan's Nikkei average...

Market Daily Report: KLCI closes higher despite regional losses

  KUALA LUMPUR (June 8): The FBM KLCI gained today on selective buying support, in contrast to regional markets which closed lower. The index ended 9.51 points or 0.6% higher at 1,587.96, supported by gains in counters like Gentling Malaysia Bhd (GenM), CIMB Group Holdings Bhd and Hap Seng Consolidated Bhd. Rakuten Trade Research head of equity sales Vincent Lau said the improved market sentiment was attributable to a decline in the number of Covid-19 cases in recent days, as well as bargain-hunting activities. Other Asian equities reversed early gains today, with traders sidelined ahead of US inflation data and a European monetary policy meeting this week, while oil prices lost more ground on worries over the fragile state of the global recovery, Reuters reported. Hong Kong's Hang Seng Index fell 0.02%, the Shanghai Composite finished 0.54% lower at 3,580.11, Japan's Nikkei 225 declined 0.19% and Singapore's Straits Times Index closed 0.27% down at 3,167.20. ...

Market Daily Report: KLCI falls in line with regional bourses

  KUALA LUMPUR (June 4): The FBM KLCI extended its losses today in line with declines in regional markets, and as market sentiment continued to be affected by the high number of Covid-19 infections in the country. The benchmark index closed 12.12 points or 0.76% lower at 1,578.45. The top decliners among the index’s components were Hap Seng Consolidated Bhd, Digi.Com Bhd and MISC Bhd. On the broader market, losers led gainers by 605 to 451, with 430 other stocks closing unchanged. Areca Capital CEO Danny Wong said there was an absence of fresh factors to influence investor sentiment. Active stocks included Zelan Bhd, Serba Dinamik Holdings Bhd and Focus Dynamics Group Bhd. The day's top value losers were led by Malaysian Pacific Industries Bhd, Petronas Dagangan Bhd and Pharmaniaga Bhd. The top value gainers were MMC Corp Bhd’s C24, C29 and C20 structured warrants. Reuters reported that most emerging Asian equities declined today while currencies weakened after upbeat e...

Market Daily Report: KLCI stays below 1,600 amid Covid concerns

  KUALA LUMPUR (June 3): The FBM KLCI came down today after two days of gains on lack of buying support, amid continued high number of Covid-19 infections and the ongoing full lockdown. The benchmark index opened at 1,599.08 and thereafter remained below the 1,600 psychological level to close 7.37 points or 0.46% lower at 1,590.97. Glove counters and other healthcare related stocks in particular came under selling due to the pandemic situation, including the slow pace of vaccination. TA Securities Research said the market should ease into profit taking consolidation mode in the absence of further confirmation on the acceleration in vaccination rollouts and stimulus fine-tuning, to better cushion the adverse impact from the current lockdown. “Immediate resistance for the index stays at 1,600, with more formidable resistance expected from the recent highs of 1,623, 1,635 and 1,642. Immediate support remains at Monday's low of 1,568, followed by the recent pivot low o...

Market Daily Report: FBM KLCI finishes 0.76% higher on crude oil price increase

  KUALA LUMPUR (June 2): The FBM KLCI rose for the second consecutive day today, closing 12.04 points or 0.76% higher today at 1,597.94 as market sentiment was boosted by a further rise in crude oil prices. All but three of the 30 index-linked counters rose, led by RHB Bank Bhd, Hap Seng Consolidated Bhd and Axiata Group Bhd. Crude oil rose to the highest level since October 2018, a positive development for oil-exporting Malaysia. Trident Analytics founder and chief research officer Peter Lim Tze Cheng said he he did not see any other strong factors that contributed to today's performance. TA Securities Research said in a note that stocks would stay range-bound pending confirmation on further acceleration in vaccination rollouts, and more stimulus or fine-tuning measures to cushion the impact from a full lockdown. “On the index, immediate support remains at Monday's low of 1,568, followed by the recent pivot low of 1,552, with better supports seen at 1,540 and 1,52...

Market Daily Report: KLCI finishes 0.15% higher at 1,585.90 points following rebound in sentiment

  KUALA LUMPUR (June 1): The FBM KLCI closed 0.15% or 2.35 points higher at 1,585.90 today. CIMB Group Holdings Bhd as well as gaming giants Genting Bhd and Genting Malaysia Bhd were the leaders among the index’s components. The positive sentiment was also present on other indices of the local bourse, with only 12 posting declines, while the rest saw gains today. In terms of market breadth, the numbers of gainers slightly edged the number of losers today at 585 versus 526, while 394 counters were unchanged. Today’s top actives were Serba Dinamik Holdings Bhd, Focus Dynamics Group Bhd and Dagang NeXchange Bhd (DNeX). The list of top value gainers, meanwhile, was headed by Malaysian Pacific Industries Bhd (MPI), Panasonic Manufacturing Malaysia Bhd and Carlsberg Brewery Malaysia Bhd.  Conversely, British American Tobacco (Malaysia) Bhd, Pharmaniaga Bhd and Sedania Innovator Bhd were the local bourse’s top losers. Areca Capital chief executive officer (CEO) Dann...